Spotify is Firing Over 1,500 Workers

Spotify is cutting jobs to save money, just like many other tech companies. Daniel Ek, the co-founder and CEO, shared in a public message that they're reducing the workforce by about 17%, which is roughly 1,500 employees out of the total 9,241 worldwide. This is the third time Spotify is letting go of employees, with 600 in January and another 200 from the podcast team in July. They're also raising prices for their premium subscription service.

The executive talked about thinking about reducing staff gradually in 2024 and 2025. However, the big gap between the financial goals they want to achieve and the current operating costs required them to take action now.

According to the memo, Spotify hired a lot more people in 2020 and 2021. The Wall Street Journal pointed out that the number of employees almost doubled during this time because Spotify was busy growing its content, marketing efforts, and exploring new business areas.

Even though the company was more productive in 2022 and 2023, they didn't reach the efficiency levels they wanted. This led Ek and Spotify to make more serious changes.

Every employee being let go will receive a severance package, which includes about five months' worth of wages and payment for their accrued and unused paid time off (PTO). They will also keep their healthcare benefits throughout the severance period and can start looking for new jobs two months after leaving.

Ek emphasized that these changes are meant to guide Spotify toward a more focused strategy. He sees the reduction in staff not as a setback but as a strategic change in direction.

The remaining employees are expected to show exceptional creativity and adaptability in the company's upcoming operations, problem-solving, and innovative projects.